Indonesia Secures Global Standing with Historic IEU–CEPA and ICA–CEPA Deals
Key Takeaways
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JAKARTA, Investortrust.id – Indonesia has strengthened its global standing with the signing of two landmark trade agreements, the Indonesia–European Union Comprehensive Economic Partnership Agreement, or IEU–CEPA, and the Indonesia–Canada Comprehensive Economic Partnership Agreement, also known as ICA–CEPA.
These agreements, finalized after years of negotiation, mark a turning point in the country’s economic diplomacy and open wider access to international markets, investment flows, and opportunities for small businesses.
The historic moment was underscored by two events. On Tuesday, Sept 23, 2025, Coordinating Minister for Economic Affairs Airlangga Hartarto and European Commission Vice President for Trade and Economic Security Maroš Šefčovič announced the substantive conclusion of IEU–CEPA in Bali. One day later, on Wednesday, Sept 24, 2025, President Prabowo Subianto and Canadian Prime Minister Mark Carney witnessed the signing of ICA–CEPA in Ottawa.
“These agreements reflect Indonesia’s consistency in defending its national interest amid global trade dynamics. With the substantive conclusion of IEU–CEPA and ICA–CEPA, Indonesia not only secures stronger bargaining power but also ensures that tangible benefits are delivered to businesses and the public,” said Haryo Limanseto, spokesperson of the Coordinating Ministry for Economic Affairs.
Economist Sunarsip noted that the European Union is one of Indonesia’s largest trading partners, accounting for around 10 percent of total exports.
Indonesia’s main shipments to the EU consist of industrial and agricultural commodities, including metal ores for automotive production, steel, electronics, crude palm oil (CPO), and other vegetable oils used in biofuels, food, and cosmetics. He projected that with IEU–CEPA, these exports will gain broader market access and stronger competitiveness.
He added that the deal could expand Indonesia’s export share to Europe at a time when global tariff policies, especially from the United States, remain uneven. “This agreement will serve as a vital buffer when demand from other key partners such as China and India weakens, ensuring Indonesia’s long-term export resilience and competitiveness,” Sunarsip said.
Sunarsip further emphasized that IEU–CEPA could reinforce Indonesia’s trade surplus and support foreign exchange reserves. However, he stressed the need for follow-up measures to ensure large corporations build partnerships with small and medium enterprises so that the benefits are widely distributed across the economy.
Firman Kurniawan, lecturer at Universitas Indonesia, highlighted the importance of effective communication strategies to ensure public understanding of the agreements. “The government must package its messages to highlight direct benefits for the public, down to the sectoral level, so that economic opportunities from the agreements can be maximized,” he said.
He added that conventional and digital media should be engaged in dialogues to prevent misinformation and help explain the complex provisions of the agreements in practical terms, particularly for small businesses that stand to benefit most.